Quote:
Originally Posted by 1stLand
1. Japan has no immigration
2. San Francisco / America built on faulty banking/lending system
Calgary will not see such a significant drop in prices as those charts portray in Japan and San Francisco
A news report released today put Calgary as #1 in average household income in Canada at approx. $90,000 / year. Edmonton followed as the 2nd highest household income per household.
at 4x's a households income, thats $360,000 for an average house, at 5x's a households income, thats an average price of $450,000 which is closer to where Calgary is right now.
If any city in Canada is going to experience significant losses in value, its going to be Vancouver. They dont have the fundamentals to support current housing prices.
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While I agree with you that you can't compare Calgary to San Fran/Japan, I completely disagree with you in your assertion that Calgary will not see a significant drop in prices. I personally don't particuliarily think there will be a huge drop but I do see a drop from current levels. After that, well it totally depends upon the economy and more importantly the price of oil and gas. There's so much uncertainty out there right now I just don't see how anyone thinks they can predict what's actually going to happen. One things for sure, should the prices of oil and gas decline and stay supressed for some time, this city could become the ghost town that it was in the early 80's.